Contrary to what you sometimes hear, compensation is the most important consideration when younger workers evaluate employment options.
According to columnist Michael Puck:
Next-generation workers are not prioritizing work/life balance, good managers, flexibility, and engaging work above pay.
More than half (59%) of Gen Zers say that pay is the most important consideration when applying for their first full-time job.
While reporters love to focus on generational differences, this trend was showing up in all parts of the workforce including real estate.
Considering this reality, you should develop a coherent plan for talking about compensation with your recruiting prospects. Here are some items your plan should include.
A description of what you offer and what it’s worth. Unless you’re the cheapest option in your marketplace, you’re offering something in exchange for higher splits and/or fees. Outline the value of what you offer.
An understanding of what your competitors are offering. This can be a moving target, but there are patterns you should know and recognize. Being able to say, “Here’s what you’re going to find when you talk to our competitors….” puts you in a better place to tell your story.
A dialog about net profit. There are no free lunches. If an agent is not paying someone else to do the menial tasks in the sales process, they are the low-paid administrative employee doing all this work.
Don’t be caught flat-footed when negotiating compensation.
The most talented recruiting prospects are doing the math—you should too.
